Read theorized that there was a “drag” in the new business pipeline, perhaps due to increased time being taken in the decision-making process.
The AI Opportunity
Read pointed to the work WPP is producing involving Generative AI which is driving conversations with clients as well as tghe partnership with NVIDIA in which the companies will work together to build a generative AI-enabled content engine for the ad business.
He cited creative campaigns developed for clients, including ING, Mondelēz, Nike and Virgin Voyages featuring Jennifer Lopez, as examples of how AI is being used by major brands.
“It’s starting to impact our client relationships and where they’re investing,” Read told Adweek. “For WPP, production is one of the fastest parts of our business and the application of AI to the production process is another area of growth this year. And increasingly, we’re seeing, like the consolidation of the Mondelēz production business earlier this year, the ability for us to grow our capabilities in that area as well.”
There are efficiencies, too. The technology sits on the same internal platform to ensure different WPP businesses are not duplicating their efforts when producing and deploying the created assets.
With the decline in tech spending, Read disagrees that it shows a sign of companies slowing down on their business transformation efforts. Instead, he believes those plans are “on pause” while CEOs and companies are taking stock of the AI revolution.
“What is interesting at the moment is companies starting to lay the foundations for what that will be and where they will invest. And then we will see an explosion of new product launch innovations and all of that will drive marketing spend,” he said.
Platform Developments
Social media platforms have been at the forefront of the news in recent months, especially focused on Elon Musk’s ownership of X—formerly known as Twitter—and the launch of Meta’s Twitter-like platform, Threads.
He has a wait-and-see view about X and believes advertisers are taking a similar stance.
“For now, it’s just a rebrand. We have yet to see how it will affect product innovation and how it will impact the nature of the platform and the nature of the discourse, and I would never count out Elon Musk. He’s a very smart operator.”
With Threads, he questioned whether it was the next Clubhouse or the next Twitter.
